Hagerty
By Joe Lorio
November 25th, 2021
Just as there are an infinite variety of collector cars, the experience of owning them is different for everyone. One aspect, however, is universal: When you leave this earth, your cars stay behind.
In that respect, cars are just like all the rest of your stuff. Although one’s car collection may be a small part of the total estate, it’s one that can be especially knotty or problematic. It also can consume more than its share of effort, angst, and expense for loved ones left behind. But with a little bit of fore-planning, that doesn’t have to be so. We of course can’t cover every wrinkle here, and your experience may vary. Rather, think of the following as a basic framework of what to consider and a gentle nudge to begin considering them.
Are your loves their loves?
Some collectors have a spouse, a child, grandchild, or other family member who shares the passion for their vintage car, but more often, none of your heirs feels as strongly about it as you do. Even those who do appreciate and admire your classic car might not feel that they have the knowledge to properly care for it or the space to keep it.
“Everybody knows what to do with inherited money, they don’t know what to do with cars,” says attorney John Draneas, who writes often on collector-car legal issues for Sports Car Market. He adds: “The other thing that is really significant about cars is that they are an asset, and can be a very valuable asset, but they have negative cash flow. They cost money. They may be worth two or three times what you paid for them, but you’re constantly putting money into them: You’ve got to store them, maintain them, repair them, insure them. It takes money to own the cars. So, if you leave them to somebody, whoever you leave them to is going to have to bear the cost of owning them.”
Whatever you decide, make your intentions known…
Making your intension known is even more important if a car is going to someone outside the immediate family. Have you promised to sell your car to a friend? At a specific price? Make sure those instructions are written down, so that your heirs know your wishes.
